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State and Federal Law Update: A Must-Read for Every Business Owner!In the years of 2024 and 2025, we are experiencing a wave of new legislation from both the Minnesota and Federal government that will affect the obligations of business owners to their employees as well as laws that may impact how they charge or disclose fees, and more. Let's look at a brief summary of some important new laws impacting business owners.
Effective January 1, 2024, Minnesota’s earned sick and safe time law requires employers to provide paid leave to employees who work in the state. Sick and safe time can be used for various reasons including when an employee is sick, needs to care for a family member, or needs assistance if an employee or their family member has experienced domestic abuse, sexual assault, or stalking.
Eligible employees include those who work at least 80 hours in a year for a Minnesota employer, who are not an independent contractor. Temporary and part-time employees are eligible.
To learn more, you can review information at the Minnesota Department of Labor and Industry website.
Effective January 1, 2025, Minnesota’s new law requires employers that employ 30 or more employees at one or more sites in Minnesota to post the starting salary range or fixed pay rate and a general description of all benefits and other compensation to be offered to a selected job applicant.
Effective January 1, 2025, Minnesota businesses can no longer add service fees, health and wellness surcharges or other mandatory charges to customers’ bills at the end of a transaction.
Effective January 1, 2025, all Minnesota employers with five or more employees that do not sponsor a retirement plan must participate in the Minnesota Secure Choice Retirement Program (MSCRP).
Effective September 24, 2024, the Federal Trade Commission (FTC) is adopting a comprehensive ban on new non-competes with all workers, including senior executives.
Effective January 1, 2024, the CTA requires certain types of entities to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of Treasury.
Effective July 1, 2024, employers must meet a salary threshold to keep an employee’s administrative, executive or professional exemption, from minimum wage and overtime rules under the Fair Labor Standards Act (FLSA).
New Required Minimum Distribution (RMDs) Rules
Effective January 1, 2023, SECURE 2.0, Section 107, increased the required minimum distribution age to 73, and to 75, beginning January 1, 2033.
Automatic Retirement Plan Enrollment
Beginning in 2025, SECURE 2.0, Section 101 requires employers to automatically enroll eligible employees in new 401(k) or 403(b) plans with a participation amount of at least 3% but no more than 10%. The contribution escalates at the rate of 1% per year up to a minimum of 10% and a maximum of 15%.
Expanded Access to Retirement Funds
Section 115 allows participants to access up to $1,000 (once a year) from retirement savings for emergency personal or family expenses without paying the 10% early withdrawal penalties (Beginning January 1, 2024).
With so many new laws going into effect, or having already gone into effect, it becomes particularly important to stay up to date. We will offer more detailed information in future posts about each law mentioned above. To stay informed, you can subscribe to our quarterly newsletter . To discuss how these laws may impact your business, call our office to schedule a review with an attorney at (507) 288-5567.
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